Asia Paciﬁc – Q3 2023
REPORT
Savills Research

Investment QuarterlyAsia Paciﬁc Investment Quarterly

Asia Paciﬁc Network
China
BeijingChangshaChengduChongqing
DalianFuzhouGuangzhou (2)HaikouHangzhouNanjingShanghai
Shenyang
Shenzhen
Tianjin
Wuhan
XiamenXi’an
Zhuhai
Cambodia
Phnom Penh*

Indonesia
JakartaJakarta*

Australia
Adelaide
Brisbane
Canberra
Lindﬁeld
Melbourne
Notting Hill
Parramatta
PerthSunshine Coast
Sydney (2)JapanTokyo (2)Macau SAR
Macau
Malaysia
Johor Bahru
Kuala Lumpur
Kuala Lumpur*
Penang

New Zealand
AucklandChristchurch

Philippines
Cebu*
Bonifacio*
Singapore
Singapore (4)Singapore*

Hong Kong SARSouth Korea
Central
Seoul
Central*Exchange Square
Taikoo Shing (2)Taiwan, China
Taichung
India
Taipei
AhmedabadBangalore
Thailand
ChennaiBangkok
Delhi
Hyderabad
VietnamMumbai
Hanoi
Pune
Ho Chi Minh City (8)* Associate Office

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Asia Paciﬁc Investment Quarterly

Content

Asia Paciﬁc

04

Australia

05

China (Northern) - Beijing

06

China (Western) - Chongqing

07

China (Southern) - Shenzhen

08

China (Eastern) - Shanghai

09

Hong Kong SAR

10

India

11

Indonesia

12

Japan

13

Macau SAR

14

Malaysia

15

Pakistan

16

Singapore

17

South Korea

18

Taiwan19

Thailand

20

Viet Nam

21

Major transactions Q3 2023

22

3

Asia Paciﬁc Investment Quarterly

Asia Paciﬁc
Persistently higher interest rates and global economic
uncertainties are continuing to hinder regional investment
activity. Preliminary estimates show Asia Paciﬁc investment
volume (deals worth over US$10 million, excluding
development sites and pending transactions) contracted by
48% YoY to a post-2013 low of US$20.7 billion in Q3/2023.
However, in early signs that investors have regained someconﬁdence in the regional property market amid a clearer
outlook for interest rates, several big-ticket deals are believed
to be under due diligence.
Japan remains in the spotlight, thanks to an ultra-loose
monetary policy and a weak yen. While the total investment
volume fell in Q3/2023, the resilient performance of theindustrial and hotel markets partially oﬀset the contraction
in other property segments. Hong Kong also saw a slight
improvement compared with Q2/2023 due to several notableredevelopment projects and hospitality deals. In China, thestruggling economy and wide bid-ask spread weighed onvolumes, but there are believed to be an increasing numberof domestic end-users and insurance ﬁrms looking for goodquality commercial stock.
Regional industrial investment slightly surpassed oﬃce
investment in Q3/2023, due to persistent demand for modern
industrial and logistics warehouses and the appeal of positive
carry. A notable deal was UniSuper’s acquisition of a 50%

stake in NPS’s Australia Industrial Portfolio for about US$322
million. Oﬃce investment volumes continued to fall thanks
to the number of global portfolio mandates aiming to reduce
their oﬃce holdings and higher borrowing costs, but several
oﬃce deals are in the pipeline. Korea remained the largest
contributor to the regional oﬃce investment volume.
Retail and hotel investment volumes were also subdued in
Q3/2023 but two big-ticket deals did complete in Singapore
and Japan, with the Bright Ruby Resources’ acquisition of
Far East Shopping Centre for nearly US$670 million and
the SC Capital consortium’s acquisition of Daiwa Resort
Hotel Portfolio for US$900 million. Multifamily investment
volumes recorded a mild decline in Q3/2023 as well. China
was the only market registering growth due to the recent
government support measures, but transactions were
dominated by domestic investors.
The cross-border investment volume was dominated byintra-regional transactions, down 54% YoY to US$6.0 billion in
Q3/2023. Singapore capital contributed almost half of the crossborder activity, while investment from North America also
rebounded after a sharp decline in the previous quarter. Japanremained the most attractive investment destination for foreign
investors, followed by Australia and India. Industrial, hotel, andoﬃces were the top three major target segments, particularly
Japanese hotels, fueled by a boom in inbound tourism.

Simon Smith
Regional Head of
Research & Consultancy,
Asia Paciﬁc+852 2842 4573
ssmith@savills.asia

Susan ManManager,
Regional Research &Consultancy+852 2842 4270
susan.cy.man@savills.asia

Susan ManManager,
Regional Research &Consultancy+852 2842 4270
susan.cy.man@savills.asia

Asia Paciﬁc Investment Volume by Sector, Q1/2019 to Q3/2023
OfficeIndustrial

RetailHotel

Apartment

Seniors Housing & Care80
70

US$ BILLION

60
50
40
30
20
10
0
Q1

Q2

Q3

Q3

Q1

2019

Q2

Q3

Q3

Q1

2020

Q2

Q3

Q3

2021

Q1

Q2

Q3

Q3

Q1

2022

Q2

Q3*

2023

Source MSCI Real Capital Analytics, as of 16th October 2023
Notes Office, retail, industrial, apartment, hotel, and senior housing & care transactions included. Entity level deals included. Development sites
excluded. Based on independent reports of properties and portfolios US$10 million and greater. Data believed to be accurate but not guaranteed.
*Preliminary for Q3/2023.

Notable Transactions in Asia Paciﬁc, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Land and part of Seibu Ikebukuro,
Sogo Chiba, and Seibu Shibuya

Various locations

JPY300.0 bil/
US$2.0 bil

Yodobashi Holdings

RetailShanghai Pudong New Area Development
Project (Yangjing Plot and the New Bund
Plot, 40% stakes for each plot)

Pudong, Shanghai,
China

RMB9.7 bil/
US$ 1.3 bil

Swire Properties

Mixed-use

Ebisu Resort Buyout of Daiwa Resort
Portfolio (27 properties)

Various locations

JPY133.6 bil/
US$900.0 mil

SC Capita, ADIA,
Goldman Sachs AM

Hotel

Far East Shopping Centre

545 Orchard Road,
Singapore

S$910.0 mil/
US$666.9 mil

Glory Property Developments,a company linked to Bright
Ruby Resources and Chinese
businessman Du Shuanghua

Commercial

COFCO Landmark Plaza

North 2nd Ring Road,
Beijing, China

RMB4.3 bil/
US$583.8 mil

N/A

OfficeSource Public announcement, Savills Researchsavills.com.hk/insight-and-opinion/

4

Asia Paciﬁc Investment Quarterly

Australia
Investment activity remains subdued relative to therecord volumes transacted during the previous two
years. There has been some repricing, as yields continue
to expand outwards across oﬃce, industrial and retail.
However, constrained transactional activity is limiting pricediscovery, particularly for oﬃce, while rental growth inindustrial continues to partially oﬀset its revaluations.
As the interest rate outlook becomes clearer, the bid-ask
spread between buyers and sellers will narrow. Despite theuncertain outlook, a number of major deals closed during
Q3 and there are several in the pipeline, suggesting liquidity
has improved for some buyers and sectors. Opportunistic
capital has been active, alongside syndicators, selectinstitutions and oﬀshore groups. The preference for global
capital to increase exposure to Australia will continue toplay a signiﬁcant role in unlocking investment activity.
Preliminary estimates for Q3 indicate that investment
volumes across the oﬃce, industrial, and retail sectors(AU$10m+) fell 33% in quarterly terms to c.AU$3.3 billion,
down from c.AU$4.9 billion in Q2/2023 (excludingtransactions that are in due diligence/pending). By sector,
oﬃce volumes are at c.AU$1.1 billion, similar to Q2 at
c.AU$1.13 billion. Industrial is currently at c.AU$1.5 billion,
down from c.AU$2.1 billion in Q2. Retail volumes areat c.AU$706 million, down from c.AU$1.7 billion in theprevious quarter.

The impact of higher inﬂation and interest rates continue
to dominate decision-making, although there are very
early signs that economy is at a turning point. Overall
price inﬂation has continued to decelerate, led bygoods, but remains high due to services price growth,similar to overseas economies. Wage growth, which
has been quite strong over the last three quarters, haseased slightly, even at the labour market remains tight.
However, unemployment has started to trend higher, andunderemployment has ticked up slightly.
Higher interest rates are weighing on consumer
spending, particularly for discretionary goods. However,the Australian economy is being supported by a strong
rebound in net exports and a faster than expected recovery
in population growth due to a rebound in net overseas
migration. Global and domestic headwinds will drag on
activity in 2023 and 2024, although the Australian economy
is expected to outperform other major advanced economies.
The RBA has kept its interest rate unchanged for four
consecutive months, with the long pause suggesting that
Australia’s central bank may be approaching the end of its
tightening cycle. Most economists are still expecting one more
rate rise later this year. While central banks are near the end of
the tightening cycle, expectations around timing of monetary
policy easing have been pushed back well into 2024. The
continued pause, however, is being welcomed by investors.

Paul Craig
CEO+61 2 8215 8888
pcraig@savills.com.au

Katy Dean
Head of Research &Consultancy+61 2 8215 6079
kadean@savills.com.au

Commercial Property Transactions (AU$10m+) by Status, Q1/2020 to Q3/2023 (YTD)

ClosedPending*

25,000VOLUME (AU$ MILLION)

20,00015,00010,000

5,000

0
Q1

Q2

Q3

Q4

Q1

Q2

2020

Q3

Q4

Q1

2021

Q2

Q3

Q4

Q1

2022

Q2

Q3 #

2023

Source MSCI Real Capital Analytics, Savills Research*Estimated transaction volumes (AU$10m+) in due diligence or pending#
Preliminary for Q3/2023

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

44 Market Street

Sydney, NSW

AU$393.1 mil/
US$253.8 mil

PAG

OfficeAxxess Corporate Park

Mount Waverley, VIC

AU$306.2 mil/
US$197.6 mil

Gateway Capital,
Cadillac Fairview

Industrial

Stockland Townsville(50% stake)Townsville, QLD

AU$115.0 mil/
US$74.2 mil

Haben Property Fund

Retail

HomeCo Midland

Midland, WA

AU$74.8 mil/
US$48.3 mil

PWD

RetailNPS Portfolio (20 asset)(50% stake)

Sydney, NSW andMelbourne, VIC

AU$500.0 mil/
US$322.6 mil

UniSuperIndustrial

Source MSCI Real Capital Analytics, Savills Research

5Asia Paciﬁc Investment Quarterly

China (Northern) - Beijing
and 44.9% YoY. The transaction price averaged RMB21,587 per
sq m, up 7.9% QoQ but down 14.2% YoY.
Meanwhile, the new supply of ﬁrst-hand strata-title retailmarket reached 21,369 sq m, up 73.9% QoQ but down 61.8%
YoY. The total transaction area was 153,439 sq m, up 12.3% QoQ
but down 40.8% YoY. Total consideration registered RMB1.82
billion, down 32.3% QoQ and 51.6% YoY. The transaction priceaveraged RMB11,878 per sq m, down 39.7% QoQ and 18.3% YoY.
Recently, Chinese government is changing its tone on the
struggling real estate sector and turns to more powerful policy
support. Speciﬁcally, various provinces and cities including
Beijing have issued a series of realty support policies in response
to signiﬁcant changes in the supply and demand balance inthe real estate market. The timely and necessary introductionof real estate regulation policies are expected to boost market
conﬁdence and stabilize overall market performance.
Although the recently relaxed policies still need time tosee eﬀects fully manifested, the panic felt by most investors
and developers have started to ease and positive sentiment isanticipated to return to the market and stay for a while.
What’s more, it is pleasant to see the investors’
conﬁdence enhanced in the sector, as en-bloc trading
volumes and prices rose in the past three months, boosted
by the government’s promise to support the realty sector
and loosen relevant policies. Onto the next stage, withthe help of further optimization of real estate regulation,for example, the purchase restrictions further relaxed, or
mortgage interest rates further lowered, it is believed that
real estate investment, sales and market performance will
gradually improve in the remainder of 2023.

Beijing’s investment market witnessed a strong reboundregarding transaction volumes in Q3/2023, thanks
to several signiﬁcant en-bloc deals that boosted theconsideration up to RMB13.7 billion, surging by 155% QoQ
and 152% YoY. It is worth noting that the high-priced
deals concluded in the quarter were all targeting quality
projects, including Grade A oﬃce assets and residentialsites. Major transactions included:• The Tower A and part of the podium in Grade A oﬃce
project KR Centre acquired by the Internet Finance giant
Ant Group with an undisclosed price.
• COFCO Landmark Plaza, another Grade A oﬃce asset,
sold to an undisclosed state-owned enterprise for a total
consideration of RMB4.26 billion.
• Contemporary Times Elderly Care Community acquired
by Taiping Life Insurance Company Limited for theconsideration of RMB2.1 billion.
Despite the restrained performance during 1H/2023, theen-bloc investment market in Beijing has started to pick up
since Q3, and the accumulated consideration in the ﬁrst
three quarters of 2023 has achieved approximately RMB26.1
billion, up by 36% YoY.
However, the commercial strata-title sales market remainedsluggish during the quarter. In terms of oﬃce sector, the ﬁrsthand strata-title oﬃce supply reached 56,766 sq m in Q3/2023,
down by 18.9% QoQ and 35.3% YoY. The total transaction area
reached 132,734 sq m, down 51.5% QoQ and 35.8% YoY. Total
consideration reached RMB2.87 billion, dropped by 47.7% QoQ

Ted Li
Senior Director
Head of Investment
Northern China+86 10 5925 2068
ted.li@savills.com.cn
Vincent Li
Director
Research+86 10 5925 2044
vincentx.li@savills.com.cn

En-bloc Investment Volumes, Q1/2017 to Q3/2023
40,00035,000RMB MILLION

30,00025,00020,00015,00010,000
5,000

2017

2020

2021

2022

Q3

Q1

Q2

Q4

Q2

Q3

Q1

Q4

Q3

Q1

Q2

Q3

Q4

Q1

2019

Q2

Q4

Q3

Q1

2018

Q2

Q3

Q4

Q1

Q2

Q4

Q2

Q3

Q1

0

2023
Source Savills Research

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

KR Centre Tower A andpart of the podium

Zhongguancun

N/A

Ant Group

OfficeCOFCO Landmark Plaza

North 2nd Ring Road

RMB4.3 bil/
US$583.8 mil

N/A

OfficeContemporary Times Elderly
Care Community

Shunyi District

RMB2.1 bil/
US$286.0 mil

Taiping Life Insurance
Company Limited

Nursing Home
Source Savills Researchsavills.com.hk/insight-and-opinion/

6

Asia Paciﬁc Investment Quarterly

China (Western) - Chongqing
In Q3/2023, no new projects entered Chongqing's Grade Aoﬃce market. Total Grade A oﬃce stock in the city remained
at 2.62 million sq m. In addition, the overall average rent
dropped slightly to 80.7 per sq m per month.
Although the market demand remained weak, theoverall improvement in tenant stability has driven thecontinuous rebound of net absorption in the city to 13,000
sq m, up from Q3/2022. In addition, some new projects
delayed entering the market, which led to a vacancy rate
decrease of 2.1% to 29.0% QoQ.
In terms of demand, with limited changes in industry
structure, professional services, supported especially bystability from law ﬁ rms’ demand, were the most active
tenants, accounting for 18.0% of the newly leased area. IT
and real estate ranked second and third, accounting for15.0% and 13.0% respectively.
It is worth noting that third-party oﬃce operators
have shown new exciting trends in the Chongqing grade
A oﬃce market in recent years. Local third-party oﬃce
operators have seen steady growth in operating area
and improvement in service quality, leading to a risein penetration rate. As tenants gain the initiative tonegotiate, third-party oﬃce operators met their demands

and helped property owners achieve rapid turnover, thus
maintaining a upward trend. Besides, local third-party
oﬃce operators expanded the scope of services to covergym, catering and decoration to enhance proﬁtability.
Cooperation with quality state-owned enterprises will
also help them to remain positive. Due to the eﬀorts madeto meet more clients’ needs, more tenants with large-areademand in Chongqing are upgrading their oﬃce to GradeA oﬃce market and became the most important sourceof leasing demand in Chongqing. It increased largely in
Q3/2023, accounting for 43% of the newly leased area andas a result the share of tenants with large-area demand(more than 2,000 sq m) also increased signiﬁcantly to 31%
in the same period.
Looking ahead, while leasing demand in the Chongqing
market still needs to recover, the signiﬁcant improvementin tenant stability may contribute to the market’s longterm stability and healthy development.

Suzie Qing
Director
Western China+86 28 8658 7418
suzie.qing@savills.com.cn

James Macdonald
Head of Research
China+86 21 6391 6688
james.macdonald@savills.com.cn

New Supply, Demand and Vacancy Rate, Q1/2017 to Q3/2023
Net Take-up （LHS)

New Supply（LHS)

Vacancy Rate （RHS）
60%

140,000
120,000

50%
100,000

SQ M

80,00040%

60,00030%
40,00020,00020%

0
10%-20,000

2017

2018

2019

2021

2022

Q3

Q1

Q2

Q4

Q3

Q1

Q2

Q4

Q3

Q1

2020

Q2

Q4

Q3

Q1

Q2

Q4

Q3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

0%
Q2

-40,000

2023
Source Savills Research

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

23 Qixin Boulevard

23 Qixin Boulevard

RMB39.0 mil/
US$5.3 mil

Chongqing Melisi New Material
Technology Co Ltd

Industrial

Eagle Fortune Shopping Mall
(Units on 1FL & 3-5FL)

82 Zourong Road

RMB73.6 mil/
US$10.1 mil

Chongqing Kangxiang Industrial
Group Co Ltd

RetailSong Hotel

18-3~7 and 18-9~38
Wenguang Boulevard

RMB421.6 mil/
US$57.8 mil

Chongqing Int'l Logistics

Hotel

Source MSCI Real Capital Analytics

7

Asia Paciﬁc Investment Quarterly

China (Southern) - Shenzhen
citywide transacted units increased by 9.7% QoQ to 2,196
simultaneously. During Q3/2023, eight projects logged
subscription rates of more than 50% on their launch day,as were the cases of Horoy Metropolis (鸿荣源珈誉府),Coastal City (万丰海岸城) and Yuexiu Grand Mansion (越秀瑞樾府) in Bao’an, Great City Bay (金地环湾城) in Futianand Horoy Center Mansion (鸿荣源尚云花园) in Longhua.
Unlike other ﬁ rst-tier cities in China, Shenzhen remains
attractive to young people to work and live in the city,
creating a sustainable housing demand growth. However,land available for residential development remains limited.
This in the long term should continue to favour theseller side. In the short term (6-12 months), however, thecitywide average residential price continues the downward
trend as it still takes time for the market conﬁdence toboomerang.

The collective impacts of the pandemic, the ongoingdomestic and global economic challenges, and more
fundamentally, a series of policy restrictions introduced
since 2H/2020 have resulted in a lacklustre development of
the Shenzhen residential sales market in the last few years,
with postponed project launches, a slump in sales volume,
an unprecedentedly weak purchasing sentiment across theboard and a price declining trend to date. As of Q3/2023, thecitywide supply fell by 35.8% and transaction plummeted by
46.4%, compared to the same period in 2020.
In a bid to boost a stable and healthy residential
property market, both central and local governments
have released a raft of policies since the beginning of2023, including lower average loan interest rates andeasier access to home buyers – albeit trivially, allowing
banks to extend maturing loans to developers, supporting
property sales by reducing down payments and mortgage
interest rates, boosting other funding channels such as
bond issues and ensuring the delivery of pre-sold homes
to buyers. With these eﬀorts made, transactions increasedin late Q3/2023. The citywide monthly transaction grew
4.7% QoQ to 213,552 sq m as of 24 September 2023. The

Ray WuHead of Southern China
Capital Markets+86 755 8436 7008
ray.wu@savills.com.cn

Carlby Xie
Head of Research
Southern China+86 20 3665 4874
carlby.xie@savills.com.cn

First-hand Residential Sales Market Supply, Transaction Volumes and Average Price, Q1/2018 to Q3/2023

Transaction Volume (LHS)

Average Price (RHS)

2018

2019

2021

2022

Q3

Q2

Q1

Q3

Q4

Q2

Q1

Q1

2020

Q3

0
Q4

0.0
Q2

10,000

Q3

0.5

Q4

20,000

Q2

1.0

Q1

30,000Q440,000

1.5

Q3

2.0

Q2

50,000

Q1

2.5

Q4

60,000

Q3

3.0

Q2

70,000Q180,0003.5

RMB per sqm

million sq m

Supply (LHS)
4.0

2023
Source CRIC, Savills Research

Major Residential Property Subscription Rates, Q3/2023
PROPERTY

LOCATION

NO. OFUNITSAVERAGE PRICE($ PER SQ M)

DEVELOPER

SUBSCRIPTIONRATESHoroy Metropolis

Bao’an2,219

RMB55,617/
US$7,614

Horoy Group

80.2%

Coastal City

Bao’an137

RMB57,425/
US$7,861

Coastal Group

79.6%

Yuexiu Grand Mansion

Bao’an302

RMB88,500/
US$12,115

Yuexiu Group

59.3%

Horoy Center Mansion

Longhua

666

RMB68,025/
US$9,312

Horoy Group

52.1%

Source CRIC, Savills Researchsavills.com.hk/insight-and-opinion/

8

Asia Paciﬁc Investment Quarterly

China (Eastern) - Shanghai
Commercial land supply 1 in Shanghai, after having dipped
brieﬂy in 2019, peaked towards the end of 2020, with 44
plots and 1.65 million sq m of site area transacted in 2020.
Volumes hit a decade low at the start of 2023 with only 13 plots
413,000 sq m sold in the 12 months to August 2023 for a total
consideration of RMB13 billion, down 65% YoY. The drop in land
volumes comes as a welcome relief with oﬃce and retail vacancy
rates at multi-year highs, however, the lag eﬀect means there is
still a signiﬁcant volume of new supply completed in the next
three to ﬁve years. As relocation costs and land values in thecity centre remain stubbornly high and city planning requires
development to focus on sub-CBD nodes, the majority of newland supply is increasingly outside the middle ring road. Indeed,
only three of the 13 commercial plots sold in the past 12 months
were located within the middle ring – plots in Changshou andZhenru in Putuo District and Caojiadu in Jing’an District.
Commercial land plots, typically sold at public auction,
set several conditions for the winning bidder to fulﬁl. These
include development schedules (typically starting construction
within half a year and completing within three to ﬁve years
depending on the size of the project), requirements to retain
ownership over a portion of the project for a speciﬁed period(sometimes for the duration of the land tenure - 50 years foroﬃce and 40 years for retail), and conditions for industry
focus of the eventual tenant. Six of the plots sold in the past 12
months require the developer to retain ownership over partor all of the development. The developer will need to have
1 Only include plots with land area over 10,000 sq m.

strong ﬁnancing and management capabilities to ensure thedevelopment meets the return requirements.
Other land use types, such as R&D zoned industrial
land, may also have additional requirements for investment
amounts, occupier corporate revenue targets, and tax revenue.
A plot in Zhangjiang, sold to Rongchang Pharmaceuticals in
August 2023 to develop a self-use life science facility, requires
a minimum total ﬁ xed asset investment (including land
value, buildings and equipment) of RMB590 million, annual
sales revenue of RMB500 million and tax revenue of RMB74
million. Should the occupier fail to meet 70% of agreed tax
contributions, the owner will have to make up the shortfall.
First-hand land plots oﬀer many advantages but can bechallenging to secure the sites, with auctions sometimes
requiring bidders to ﬁrst go through a vetting process looking
at their previous track record, related project experience,industry positioning, etc. Acquiring ﬁrst-hand land ensuresa fresh land use tenure and allows end users to build to their
speciﬁcations. They also may be able to acquire the land at asigniﬁcant discount to completed properties. The Zhangjiang
life science plot mentioned above was sold for RMB2,900 per
sq m, assuming construction of RMB4,500 per sq m and othermiscellaneous expenses, the all-in costs are still close to a thirdof the price of a neighbouring LSRE development selling at
RMB30,000 per sq m. Local governments often sell land to end
users at a lower price to attract leading companies aligned with
their region's industrial positioning, to generate sustained tax
revenues and to promote long-term industry clustering.

Louisa Luo
Head of Capital Markets
& ILS
China
+86 21 6391 6688
louisa.luo@savills.com.cn

James Macdonald
Head of Research
China+86 21 6391 6688
james.macdonald@savills.com.cn

Land Sales Transactions, Q1/2014 to Q2/2023

Land Area Transacted 4QMA (LHS)

No. of Land Transacted 4QMA (RHS)

900,00025

20

700,000
600,000
SQ M

15
500,000
400,000
10
300,000
200,000

5

NO. OF LAND TRANSACTED

800,000

100,000
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Source CREIS

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Fraser Suites Top Glory

Pudong

RMB4.1 bil/
US$569.0 mil

Huineng Group

Serviced Apartment

Sheraton Shanghai
Hongkou Hotel

Hongkou

RMB1.6 bil/
US$225.7 mil

Jinfeng Group

Hotel

Tomson Waigaoqiao
Industrial Park

Pudong

RMB404.0 mil/US$55.5 mil

Haihua Group and Ustar

Industrial

China Overseas Centre(Block E 6-9F)

Putuo

RMB306.0 mil/
US$42.0 mil

Yuanlong Yato

OfficeCaohejing Kangqiao
Business Park (Building 4/5)

QingpuRMB163.0 mil/
US$22.4 mil

KindstarBusiness Park
Source Savills Research

9Asia Paciﬁc Investment Quarterly

Hong Kong SAR
continued to show interest in the strata oﬃce market, with
28/F of Shun Tak Centre, China Merchants Tower, selling for
HK$778 million (HK$30,635 per sq ft) to China Merchants.
More receivers' en-bloc assets, primarily those previously
held by troubled Mainland developers, are expected to be
put on the market for sale, but the success of these sales
may depend on how much lending banks are willing tocompromise given the current weak market sentiment andrelatively high LTVs of these assets.
While retail sales still recorded a 19% year-on-year
growth over the ﬁrst eight months of 2023, the allureof newer, larger shopping malls in Shenzhen, oﬀering awider range of shopping and dining options at discounted
prices, drew many young Hongkongers across the borderduring weekends. This trend is evident in an average ofover 6 million outbound trips per month by Hongkongers
from April to September. Consequently, only retail deals
with high yields on oﬀer were recorded in the past threemonths. Large-cap retail podiums (>HK$500 million) weretransacted with yields of 5% or more, while smaller-cap
retail podiums (HK$100 million - HK$250 million) weresold with yields around 3.5% to 4%. Even veteran investors
like Emperor Group and Mr. Yeung Fun Bun began to oﬄoad
some non-core assets.

The high cost of funding remains a signiﬁcant concern
for the local property investment market, with 3-month
HIBOR standing at 5.2% at the end of Q3/2023. The
ongoing softening of the Mainland China economy and theworsening debt situations of many Mainland developers
and related ﬁnancial institutions have further dampened
investment sentiment. Mainland capital, previously a key
source of funding for major transactions, has become evenscarcer in the market.
Despite this, state-owned enterprises (SOEs) continued
to demonstrate their presence in the hospitality sector.
China Tourism Group, for instance, made headlines byacquiring De Fenwick, a serviced apartment in Wanchai,for a substantial HK$900 million. The company plans tocarry out a joint redevelopment project with their existing
property, the Kew Green Hotel Wanchai, which is also under
their ownership and operation. Notably, this purchasemarks their second hotel asset acquisition of the year,
following their previous investment of HK$3.4 billion in the
Kimberley Hotel located in Tsim Sha Tsui.
The commercial investment market remained subdued,with the only en-bloc transaction involving a distressedsale of a Grade B oﬃce at 28 Austin Avenue in Jordan, whichsold for HK$138 million with vacant possession. End users

Peter Yuen
Managing Director
Investment & Sales+852 2842 4436
pyuen@savills.com.hk

Jack Tong
Director
Research & Consultancy+852 2842 4213
jtong@savills.com.hk

3-month HIBOR vs US Fed Fund Rate, January 1997 to September 2023
HK 3-month HIBORUS Fed Fund Rate

18
16
14
12
%

10
8
6
4
2
Jan-23

Sep-23May-22

Jan-21

Sep-21

May-20Jan-19Sep-19

May-18Jan-17

Sep-17May-16

Jan-15

Sep-15May-14Jan-13

Sep-13May-12

Jan-11

Sep-11

May-10

Jan-09Sep-09

May-08Jan-07

Sep-07

May-06

Jan-05

Sep-05

May-04Jan-03

Sep-03May-02Jan-01

Sep-01

May-00Jan-99

Sep-99May-98Jan-97

Sep-970

Source HKMA, US Federal Reserve

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

De Fenwick

Wanchai

HK$900.0 mil/
US$115.7 mil

China Tourism Group

Serviced
Apartment

28/F China Merchants Tower,
Shun Tak Centre

Sheung Wan

HK$778.0 mil/
US$100.0 mil

China Merchants

OfficeThe retail podium of
The Henley

Kai Tak

HK$528.0 mil/
US$67.9 mil

A mainland buyer

RetailThe retail podium on G/F-3/F withan advertising space, OLIV

Causeway Bay

HK$300.0 mil/
US$38.6 mil

Everbliss Properties

RetailThe retail podium of
18 Upper East

Shau Kei Wan

HK$180.0 mil/
US$23.1 mil

A mainland buyer

RetailSource Savills Research & Consultancy

savills.com.hk/insight-and-opinion/

10

Asia Paciﬁc Investment Quarterly

India
Like most major economies, India is faced with a scenario
of scaled-down growth in the face of global headwinds.
However, the central bank has ensured that inﬂation does
not spiral out of control and the economy largely adheres
to its growth path. In early August, the RBI maintained
the repo rate at 6.5% for a third consecutive time in its bimonthly policy meet thereby conveying its conﬁdence in its
ability to manage inﬂation. RBI followed a similar approachin October 2023 as the inﬂation projection for FY 2023-2024
currently stands at 5.4%, well within the tolerance zone of
2% to 6%.
Despite an element of uncertainty, several key
indicators continued to provide a sense of positivity. For
example, retail inﬂation eased to 6.8% while core inﬂation
continued to slow dropping by 0.1 percentage points
to 4.8% in August 2023. Similarly, core sector growth
registered a 14-month peak of 12.1% in August 2023 while
manufacturing PMI stood at a 3-month high of 58.6 inAugust 2023. Further, the 6.5% GDP forecast by the RBI for
FY 2023-2024, means that India continues as the fastest
growing major economy.
Drawing conﬁdence from government eﬀorts to builda favourable environment, investment sentiment appears
to be positive and investor conﬁdence remains intact.
During Q3/2023, private equity investment inﬂows into

the Indian real estate sector amounted to US$934 million(INR78 billion), almost three times the level recorded
during Q3/2022. Further, the investment inﬂows during
January-September 2023 are noted as US$2.1 billion(INR173 billion), registering a marginal increase of 2% YOY
compared to the quantum recorded in the corresponding
period in the previous year. Despite intensifying global
economic recessionary concerns and a challenging geopolitical situation, PE investments in Indian real estate
maintained their momentum as the sector provided
favourable avenues for foreign and domestic institutional
investors.
The commercial oﬃce segment maintained the pivotal
position during Q3/2023, garnering an 81% share in theoverall investment pie. All the quarterly investment in
the commercial segment came from foreign institutional
investors and was spread across development assets in
Mumbai as well as core assets in Delhi-NCR and Chennai.
Other investments were concentrated in industrial andwarehousing assets in Mumbai, Cuttack, Aurangabad,
Hosur and Goa as well as residential assets in Pune andthe NCR.

Anurag Mathur
Chief Executive Officer+91 96 500 37779
anurag.mathur@savills.in

Arvind NandanManaging Director
Research & Consulting+91 98 200 97634
arvind.nandan@savills.in

Private Equity Real Estate Investment, Q3/2021 to Q3/2023
No. of Deals (RHS)
16

1,400

14

1,200

12

1,000

10

800

8

600

6

400

4

200

2

0

NO. OF DEALS

US$ MILLION

Deal Value (LHS)
1,600

0Q3/2021

Q4/2021

Q1/2022

Q2/2022

Q3/2022

Q4/2022

Q1/2023

Q2/2023

Q3/2023

Source Savills Research & Consulting

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

A 22-acre land parcel in Worli

Mumbai

INR52.0 bil/
US$627.0 mil

Sumitomo

OfficeA 57-acres land parcel in
Cuttack (Odisha)

Cuttack

INR3.6 bil/
US$43.0 mil

ESR Group

Industrial & Warehousing

500,000 sq ft pre-leased
warehousing property in
Bhiwandi

Mumbai

INR1.8 bil/
US$21.0 mil

Mirae Asset Global
Investments

Industrial & Warehousing

Source Savills Research & Consulting

11

Asia Paciﬁc Investment Quarterly

Indonesia
Indonesia's economy is proving to be quite robust in the faceof the global political and economic turmoil. Amid ﬂuctuationsin the world economy, Indonesia's economic growth in thethird quarter is expected to remain ﬁrmly in positive territory
above 5% while inﬂation stands at a manageable 3.3%.
Hotel market performance during the third quarter of 2023
showed the highest increase in occupancy compared withthe previous quarter, from 47.6% to 55.5%, driven by MICE
activity, both national and international. The large numberof oﬄine events and business symposiums from both thegovernment and private corporations have also contributed
to the improving hotel performance. The ASEAN Summit in
Jakarta, which was held in July and September, had quite apositive impact, especially on 5-star hotels. Based on the hotel
market cycle, the third quarter is the peak for MICE activities
by ministries and state-owned companies.
Currently, Indonesia is a promising landscape for theretail sector, and new brands such as MLB, Lululemon andPinko are entering the market for the ﬁrst time. Retail market
movements in Indonesia are still centralized on the islandof Java, especially Jakarta. Apart from lifestyle concepts,
temporary ‘pop up’ retail concepts are gaining in popularity,
as a quick win alternative for land optimization. Demand
absorption has been supported by F&B, fashion, and otherspecialty tenants. Department stores are still downsizing inmoves aimed at improving cost eﬃciency.
The oﬃce market showed some stabilization in the third

quarter of 2023, although it continued to struggle with limited
absorption and depressed prices. This modest uptick in
performance was driven by many companies switching fromthe WFH model to oﬃce-based working, especially the private
sector, including those ﬁrms which had previously adopted a
hybrid model. Oﬃce market movements have been dominatedby relocations, especially to ready-to-use oﬃce space. This also
reﬂects companies’ eﬀorts to realize cost savings and shortermove-in times.
The apartment market has remained under pressure, andabsorption of only 180 units in the third quarter was lower thanduring the previous period. The election in 2024 is becoming
an issue causing the slowdown in the apartment market. Theapartment market up until the end of September 2023 had
not shown any signs of growth. Limited demand could also be
due to the dearth of options available from existing projects,
coupled with an absence of newly launched projects.
Demand for industrial land stood in positive territory,
reﬂected by the expansion of existing tenants, especiallycompanies from Indonesia, Korea, and Japan. Most of thedemand is currently from Japanese, Indonesian, and Korean
companies for electric vehicles, automotive manufacturing,
FMCG, packaging, and data centers. Data centers continue
to be a new source of demand absorption. The logistics
and industrial markets continue to grow rapidly due to thecountry’s strong economic performance and the accelerated
adoption of e-commerce.

Kevin Murtagh
President Director+62 21 293 293 80
kevin.murtagh@savills.co.id

Tommy Henria Bastamy
Senior Director
Research & Consultancy+62 21 293 293 80
tommy.bastamy@
savills.co.id

Retail Market in Greater Jakarta, Q3/2023
New Supply

Net Demand

200,000

150,000

SQ M

100,000

50,0000-50,000
2018

2019

2020

2021

2022

Q3/2023

Source Savills Research & Consultancy

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Greenland International
Industrial Center

Cikarang, West Java

IDR150.0 bil/
US$9.9 mil

Pepsi Co

Industrial

Java Integrated Industrial
and Port Estate

Gresik, East Java

IDR1.7 tri/
US$114.5 mil

Sichuan Hebang
Biotechnology Co.

Industrial

Mandarin Oriental Hotel

CBD, Jakarta

IDR1.3 tri/
US$83.5 mil

PT Astra International Tbk

Hotel

Source Savills Research & Consultancy

savills.com.hk/insight-and-opinion/

12

Asia Paciﬁc Investment Quarterly

Japan
According to the Ministry of Finance, corporate proﬁts
across all industries in Q2/2023 increased by 11.6% yearon-year (YoY). Most notably, the strength of demand fromdomestic consumers has made a positive contribution,in addition to the robust performance of the hospitality
and retail sectors driven by the rapid recovery of inboundtourism and the weak yen. Despite the positive news, private
consumption suppressed by inﬂation, as well as headwinds
from the weak economic sentiment overseas do not bodewell for the country overall.
The August CPI excluding fresh food was up 3.1% YoY,
having eased from the record 4.2% in January. Cost pressurescontinue to squeeze average households due to elevatedenergy and import prices linked to the weak yen, which
may force the Bank of Japan to further normalise monetary
policy sooner, having already widened the range of the 10year bond yield in late July. Short-term interest rates may be
increased late this year, or after meaningful wage growthnext spring at the latest.
TOPIX increased moderately in Q3/2023 at 1.5% quarteron-quarter (QoQ). Indeed, interest in Japan remains
elevated among international investors, who are expecting
economic growth based on wage growth as well as strong
corporate performance. Although the TSE J-REIT index
decreased marginally by 0.1% QoQ, the stabilised credit
market and the improved outlook for the oﬃce sector will

likely provide some stability in the market.
The logistics sector retains its magnetic appeal forinvestors, undeterred by noticeably elevating vacancy rates.
Simultaneously, the residential sector continues to bask inthe limelight, especially following some price adjustments.
The sound leasing performance of the oﬃce sector in Japanis likely to augment its outlook going forward, despite somepessimism. Elevated demand from inbound tourists has led
to substantial performance increments in the hotel industry,
further enticing investors and operators. Likewise, the retailsector is witnessing a surge in interest, driven by robust
inbound demand. Suburban malls may also see heightened
attention given the attractive and stable yields available.
Credit markets are exhibiting tangible signs of stabilisation
and are poised to catalyse a surge in transaction volume in
the foreseeable future, underpinned by an array of diverse
market perspectives and global exposures.
In Q3/2023, rental changes in the Grade A oﬃce market
were nominal, increasing by 0.1% QoQ to JPY32,410 per tsubo.
Meanwhile, vacancy softened moderately by 0.8ppts QoQ to
3.4%. A majority of changes in vacancy over the quarter canbe attributed to a handful of properties that are dealing withlarge-scale vacancies. Nonetheless, vacancy rates for Grade A
oﬃces remain low overall. Tenant relocations have picked up
in earnest and many new modern developments in particularhave been largely absorbed with limited issues.

Christian Mancini
CEO, Asia Paciﬁ c(excl Greater China)+81 3 4330 3611
cmancini@savills.co.jp

Tetsuya Kaneko
Managing Director,
Head of Research &Consultancy+81 3 4330 3103
tkaneko@savills.co.jp

Office Rents and Vacancy in Tokyo’s Central Five Wards, 2011 to Q3/2023

Grade B Vacancy

Grade A Rents (LHS)

Grade B Rents (LHS)
8%35,0007%30,0006%

25,0005%

20,000

4%

2011

2012

2013

2015

2016

2017

2019

2020

2021

2022

Q1

Q3

Q1

Q3

Q3

Q1

Q1

Q3

Q1

2018

Q3

Q1

Q3

Q3

Q1

Q1

Q3

Q1

2014

Q3

Q3

Q1

0%
Q3

0
Q1

1%

Q1

5,000

Q3

2%

Q1

3%

Q3

15,00010,000VACANCY RATEJPY PER MONTH PER TSUBO

Grade A Vacancy
40,0002023

Source Savills Research & Consultancy

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Land and part of Seibu Ikebukuro,
Sogo Chiba, and Seibu Shibuya

Various

JPY300.0 bil/
US$2.0 bil

Yodobashi Holdings

RetailDaiwa Resort Hotel Portfolio(27 properties)

Various

JPY133.6 bil/
US$900.0 mil

SC Capita, ADIA,
Goldman Sachs AM

Hotel

The Imperial Hotel Tower(35% land ownership)Tokyo

JPY62.0 bil/
US$417.8 mil

Mitsui Fudosan

Hotel, office, retail

Fusaki Beach Resort Hotel & Villas

Okinawa

JPY40.3 bil/
US$271.5 mil

Invincible REIT

Hotel

Sun Square

Tokyo

Undisclosed*

Undisclosed

Retail/Entertainment

Source Nikkei RE, MSCI Real Capital Analytics, J-REIT disclosures, Savills Research & Consultancy*Price undisclosed but seller expects to post capital gain of approximately JPY25.4 bil/US$171.2 mil from the transaction.

13

Asia Paciﬁc Investment Quarterly

Macau SAR
The Macau government launched its long-awaited land
auction programme in early August, with two residential
land parcels in Taipa city center namely BT8 and BT9achosen for public tender. The deadline for bidding
submissions will be late September, and bids will be
evaluated, and successful bidders selected thereafter.
There have not been any public land auctions for the past
15 years, previously almost all land supply was negotiatedand granted directly by the government to developers
individually. However, since the new legislation oﬃciallycame into eﬀect in 2014, the Macau government has revoked
undeveloped land which had not been completed in line withthe original designated development parameters within the
granted leasehold period. As a result, many sizeable sites are
now held by the government, while private developers are
generally short of land.
The two land parcels are located near Taipa city center,with comprehensive residential amenities nearby, which
provide good conditions for the future development of thesubject sites. The tender base price for plot BT8 is about
MOP1.13 billion, and for plot BT9a is MOP770 million, while
the average gross ﬂoor area unit price is about MOP3,000
and MOP2,200 per sq ft respectively. The prices are deemed
reasonable considering the development costs on top of theland cost and could potentially be proﬁtable. It is expectedthat developers will be interested in bidding, especiallythose in a stronger ﬁnancial position.
Up until July 2023, there were 1,028 residential propertytransactions this year, while only 43 deals were ﬁrst-handresidential transactions, over 95% among which were secondhand transactions. One of the reasons is that developers are
not aggressively promoting their properties given current
market sentiment, a high interest rate environment anda relatively weak performance from the property market.
However, the delayed sales will put ﬁnancial pressure on
developers who will need to pay back development loans. As
a result, it is anticipated that more residential projects will
be introduced to the market in the coming years as interest
rate concerns diminish.
The average unit price of residential properties is reported
as MOP8,830 per sq ft in saleable area in Q2/2023, making
it another consecutive quarter below MOP9,000 since
Q4/2021, reﬂecting the negative impact of interest rate rises
on homebuyers and the value of residential properties in thecurrent environment. Prices are expected to pick up again in
the coming quarters as interest concerns ease. For average
unit rental rates, the ﬁgure was reported as MOP11.9 per sq ft
per month in saleable area in Q2/2023, a 6% decrease YoY.

Franco LiuManaging Director+853 2878 0623
ﬂiu@savills.com.mo

Cindy Liu
Senior Director andHead of Valuation (Macau)+853 2878 0623
cliu@savills.com.mo

Residential Transaction Volumes and Average Transaction Prices, June 2019 to June 2023

TRANSACTION VOLUME

Average Price (RHS)
12,0001,000

10,000

800

8,000

600

6,000

400

4,000

200

2,000
0
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul

0

2019

2020

2021

2022

UNIT PRICE IN SALABLE AREA, MOP SQ FTTransaction Volume (LHS)
1,200

2023
Source DSF Macau, Savills Macau

savills.com.hk/insight-and-opinion/

14

Asia Paciﬁc Investment Quarterly

Malaysia
After ﬁve strong quarters, Malaysia’s YoY GDP growthmoderated to 2.9% in Q2/2023. Factors such as improved
labour market conditions, increased household spending, andmore tourist activity contributed to the GDP growth. However,
weaker global demand, reduced commodity sector production
and a high base eﬀect from the previous year weighed heavily.
Despite global challenges, Malaysia’s central bank, Bank
Negara Malaysia (BNM), expects GDP to grow by 4% to 5% in
2023, mainly supported by domestic demand. BNM maintained
the Overnight Policy Rate (OPR) at 3.0%, just below the preCOVID level of 3.25%, as inﬂation moderated to 3.4%.
Major capital transaction values for the reviewed quarter
improved by 22% YoY and 125% QoQ to MYR3.52 billion(Q3/2022: MYR2.88 billion, Q2/2023: MYR1.57 billion),
the highest in a single quarter since 2020. The increase incapital transaction volumes was driven by a few signiﬁcantland acquisitions, particularly by key industrial players, withindividual deals exceeding MYR200 million. Notably, mostof these transactions were concentrated in the Greater KL
and Johor regions.
The largest transaction in the reviewed quarter involved
Scientex Berhad acquiring eight freehold land parcels in Tebrau,
Johor from SP Setia Bhd for MYR547.7 million. Scientex Bhd
plans to build 12,000 aﬀordable homes on this land, coveringa total of 960 acres. Additionally, Scientex Bhd purchased 550
acres of land from Seriemas Development Sdn Bhd in Kulai,
Johor for MYR299.8 million, with plans to develop 7,000

aﬀordable homes. These acquisitions are part of Scientex
Group’s landbank expansion strategy, aligning with their goal tobuild 50,000 aﬀordable homes nationwide by 2028.
The next three highest transactions took place in Greater
KL. Sentral REIT acquired Menara CelcomDigi in Petaling
Jaya, Selangor, from Malaysian Resources Corp Bhd (the REIT’s
sponsor) for MYR450.0 million. This 27-storey purpose-built
oﬃce building has a NLA of about 450,000 sq ft, with six podium
levels and three basement parking levels. In Kuchai Lama,
Kuala Lumpur, Ajinomoto Bhd disposed of six contiguous
land parcels with redevelopment potential to Paragon TSL
Sdn Bhd, part of the TS Law Group, for MYR408.0 million.
The food producer is selling the plots, which currently hostits corporate oﬃces and factories, as they can no longer
accommodate further capacity expansion. Lastly, Puncak Niaga
Holdings Bhd sold three parcels of leasehold land in Selangor
measuring over 166 acres for MYR306.0 million to sistercompanies Alpha Galaxy Sdn Bhd and Alpha Galaxy 1 Bhd.
Moving back to Johor, a leading property developer, Eco
World, acquired 404 acres of freehold land in the Kulai areafor MYR211 million from IOI Prima Property Sdn Bhd. The
group plans to develop a business park (“Eco Business ParkVI”) catering to medium and light industrial businesses.
This quarter’s elevated activity, headlined by some of thebest-known industry players, indicates growing conﬁdence
in market prospects as we head into the ﬁnal quarter of 2023
and into 2024.

Datuk Paul KhongManaging Director+603 2092 5955 ext 137
paul.khong@savills.com.my

Nabeel Hussain
Deputy Managing Director
Head of Capital Markets+603 2092 5955 ext 126
nabeel.hussain@
savills.com.my

Transaction Volumes and Value, Q1/2021 to Q3/2023

Total Transaction Value (LHS)

Transaction Volumes (RHS)
35
31
30

4.00

25

3.52

23
21

21

20

3.00

2.88

18

18
2.14

2.10

14
1.82

2.00

1.99

1.94

25

20
20
16

2.20

15
1.57

1.46

10
0.94

1.00

5

TRANSACTION VOLUME (NO.)

0

2021

2022

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

0.00
Q1

TRANSACTION VALUE (MYR BILLION)

5.00

2023
Source Savills Research

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

A 960 acres of land

Johor

MYR547.7 mil/
US$116.5 mil

Scientex Bhd

Development land

An office building with
NLA 452,762 sq ft

Selangor

MYR450.0 mil/
US$95.7 mil

Sentral REIT Management Sdn Bhd

Commercial land andbuilding

A 26 acres ofdevelopment land

Kuala Lumpur

MYR408.0 mil/
US$86.8 mil

TS Law Group

Development land

A 166 acres of land

Selangor

MYR306.0 mil/
US$65.1 mil

Alpha Galaxy Sdn Bhd andAlpha Galaxy 1 Bhd

Development land

A 550 acres of land

Johor

MYR299.8 mil/US$63.8 mil

Scientex Bhd

Development land

Source Savils Research, Bursa Malaysia

15

Asia Paciﬁc Investment Quarterly

Pakistan
Lahore’s oﬃce market has evolved over the years withclients shifting from lower grade buildings to Grade A andB buildings with better quality amenities, larger parking
spaces and better accessibility. This demand has comefrom MNCs based on their global SOPs, along with large
Pakistani corporates who require head oﬃce and regionaloﬃce space.
Pakistan continues to face adverse macroeconomic
conditions, resulting in high inﬂation, high interest rates,and ongoing Pakistan Rupee (PKR) depreciation, leading
to a decline in economic activity. Despite this, the oﬃce
market has remained robust in Q3/2023.
Lahore’s Grade A and Grade B existing oﬃce stockcomprises around 1.7 million sq ft of net leasable area, themajority of which is concentrated in the Gulberg area. The
Gulberg area has historically been the city’s commercial
and oﬃce hub, given it is the center point of the city, witheasy access to the airport, highways and other majorarteries of Lahore.
Lahore has three existing Grade A oﬃce buildings, allof which are in the Gulberg area. Their occupancy ranges
from 80% to 100%, showing the strong demand for GradeA buildings in prime locations. Lahore has seven Grade Boﬃce buildings with occupancy ranging from 60% to 90%,

which highlights that there is strong demand for Grade B
buildings as well.
Lahore’s Grade A and Grade B upcoming oﬃce supply
comprises around 0.85 million sq ft of net leasable area
coming up over the next four years, dispersed across thecity. Grade A accounts for over 616,000 sq ft whilst GradeB developments represent over 238,000 sq ft of conﬁ rmed
space, with three more developments on the horizon.
Most clients prefer lease over sale with typical lease
rates for existing Grade A oﬃce spaces between US$0.56
and US$0.83 per sq ft, whilst for existing Grade-B oﬃce
spaces they are typically between US$0.37 and US$0.78
per sq ft.
Sale rates for existing Grade A oﬃce spaces range
between US$93.9 and US$120.7 per sq ft. whilst forexisting Grade B oﬃce spaces the ﬁ gure is usually US$64.3
to US$99.1 per sq ft.
Though Gulberg remains the hub for existingdevelopments, upcoming developments are more spreadout across Lahore with locations such as Johar Town,
Pine Avenue, Walton Road and Jubilee Town added to theupcoming mix.

Hammad Rana
Chief Executive Officer+92 21 3561 2550-2
hammad.rana@savills.pk

Nadine Malik
Director
Strategic Consultancy+92 21 3561 2550-2
nadine.malik@savills.pk

Lahore Existing Office Development Sale Rates (Grade A and B), Q3/2023

AVERAGE SALE RATE (USD PER SQ FT)

120

100

80

60

40

20

0
Grade A

Grade B
Source Pakistan Bureau of Statistics

Major Sales and Leasing Transactions, Q3/2023
PROPERTY

LOCATION

CATEGORYAMOUNT

BUYER/TENANT

USAGE

Grove Residency

KarachiSales

PKR252.0 mil/
US$876,000.0

Bank Alfalah

OfficeNaveena Tower

LahoreLeasing

PKR401.6 mil per month/
US$1.4 mil per month

EY Rapid Innovation

OfficeNice Trade Orbit Tower

Karachi

Leasing

PKR252.4 mil per month/
US$877,547.0 per month

Roche

OfficeDolmen Sky Towers

Karachi

Leasing

PKR69.0 mil per month/
US$239,826.0 per month

EY Rapid Innovation
BRR

OfficeAl-Tijarah Centre

Karachi

Leasing

PKR50.7 mil per month/
US$176,311.0 per month

Eli Lilly Pakistan

OfficeSource Savills Pakistan - Transaction Advisory Services

savills.com.hk/insight-and-opinion/

16

Asia Paciﬁc Investment Quarterly

Singapore
The real estate investment market recorded S$7.07 billion
worth of deals in the third quarter of 2023, double the S$3.54
billion achieved in the previous quarter.
In the public sector, seven land parcels under theGovernment Land Sales (GLS) Programme were awarded
for a total value of around S$4.16 billion, contributing
58.8% to the quarter’s total investment sales. Because of
the sale of several large sites, such as the residential sites at
Marina Gardens Lane (S$1.21 billion) and Jalan Tembusu(S$828.8 million), and the commercial and residential site
at Tampines Avenue 11 (S$1.03 billion), this is the highest
quarterly value recorded under the GLS Programme since
Q3/2011.
Private housing market activity has begun cooling inrecent months. The hefty 60% Additional Buyer’s Stamp
Duty (ABSD) for foreigners has sharply curtailed demand
from this group of buyers, especially in the high-end
market segment. For locals and permanent residents,
rising mortgage rates and economic challenges haveaﬀected sentiment. For developers, caution prevails,
and this is evidenced by their subdued response to state
tenders of private housing sites. For example, a land parcel
in Jalan Tembusu fetched just two bids, with the top bid of
S$1,069 per sq ft per plot ratio (psf ppr) about 18% lower

than the S$1,302 psf ppr paid for a site across the road in
January 2022. Similarly, just two oﬀers were submitted fora site at Lentor Close, while the winning bid of S$982 psf
ppr was 0.3% below the S$985 psf ppr achieved for a site
located in the vicinity which was awarded ﬁve months ago.
Amongst the six GLS sites in Lentor Hills Estate whichhave been awarded since July 2021, this price is the lowest.
The private sector logged in S$2.91 billion oftransactions in the quarter, on par with a quarter ago.
Buying activity in the private sector, however, was
subdued. There were 63 deals recorded, representing
a 35.7% drop from the 98 transactions in Q2/2023. The
Hungry Ghost Month, the 60% ABSD for purchasing
residential properties by foreign buyers and the high interest
rate environment were the likely reasons behind the decline.
The most notable deals in the private sector include the
S$910 million collective sales of Far East Shopping Centre- a 999-year leasehold commercial property along Orchard
Road - to a company linked to Bright Ruby Resources
and Chinese businessman Du Shuanghua, and the S$525
million sale of PARKROYAL on Kitchener Road by United
Overseas Land to an entity of Worldwide Hotels Group, theowner of Hotel 81 in Singapore.

Jeremy LakeManaging Director
Investment Sales &Capital Markets+65 6415 3633
jeremy.lake@savills.com.sg

Alan Cheong
Executive Director
Research+65 6415 3641
alan.cheong@savills.com.sg

Investment Sales Transaction Volumes by Property Type, Q3/2023

Mixed
17%
Industrial
4%
Residential
48%

Hospitality
7%

Commercial
24%

Source Savills Research & Consultancy

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Government Land

Tampines Avenue 11

S$1.2 bil/
US$884.1 milTopaz Residential Pte Ltd andTopaz Commercial Pte Ltd

Commercial andresidential

Government Land

Marina Gardens Lane

S$1.0 bil/
US$758.1 mil

Kingsford Huray Development Pte Ltd,
Obsidian Development Pte Ltd andPolarix Cultural & Science Park Investment
Private Limited

Residential

Far East Shopping Centre

545 Orchard Road

S$910.0 mil/
US$666.9 mil

Glory Property Developments, a company
linked to Bright Ruby Resources andChinese businessman Du Shuanghua

Commercial

Government Land

Jalan Tembusu

S$828.8 mil/
US$607.4 mil

Sim Lian Land Pte Ltd and
Sim Lian Development Pte Ltd

Residential

PARKROYAL On
Kitchener Road

181 Kitchener Road

S$525.0 mil/
US$384.7 mil

Midtown Properties Pte Ltd, an entity ofWorldwide Hotels Group

Hotel

Source Housing & Development Board (HDB), Urban Redevelopment Authority (URA), Savills Research & Consultancy

17

Asia Paciﬁc Investment Quarterly

South Korea
According to the Bank of Korea (BOK), Korea's economic
growth remains at 1.5%, as consumption growth slows
more than previously projected and the contraction inconstruction investment and goods exports moderates. The
BOK anticipates a 2.1% recovery in 2024 due to improved
domestic demand and goods exports.
However, there is optimism as the slowdown in the
Korean economy is exhibiting signs of moderation, with the
manufacturing industry serving as a driving force. The easingof the slowdown is largely a result of increased growth inmanufacturing driven by a reduction in the decline in exports,
particularly in the automobile and semiconductor industries.
Amid a slowdown in economic activity, the employment
market maintains favorable conditions, and inﬂation isdecelerating, thus diminishing the need for a further hikefrom its current policy rate of 3.5%.
Total investment volume year-to-date in the oﬃce andlogistics sectors stands at c.KRW7.5 trillion, based on
preliminary data. The ﬁgure, attributable to 83% in oﬃces
and 17% in logistics, represents only 39% of the peakvolume recorded during the same period in 2021. Despite
the subdued volumes, unit pricing has remained relatively
stable, particularly for oﬃces.
Notably, analysis of buyers in the oﬃce sector reveals
domestic entities, such as the National Credit Union(Shinhyub) acquisition of Tower 8 for KRW549.0 billion. In

contrast, oﬀshore investors have shown greater interest in
the logistics sector, including LOGOS.
There was a notable lack of activity across several realestate sectors, however, including logistics, retail, andhospitality. Recently-closed and ongoing hotel transaction,such as New Kukje, is anticipated to undergo conversion
to oﬃce space. The logistics sector is facing signiﬁcantchallenges, characterized by pricing pressures stemmingfrom imbalances in supply and demand, and uncertainties
surrounding leasing demand, particularly in cold andfrozen storage.
The outlook for Korea’s investment markets remains clouded
until the end of the year, as investors, both domestic andforeign, continue to be selective. Despite the growing numberof sellers eager to introduce new deals to the market, driven bychallenges in reﬁnancing due to rising capital costs and global
portfolio mandates aiming to reduce oﬃce holdings, there is alimited pool of institutions with readily available capital.
Aside from the exceptional performance of the oﬃce sector,
which currently boasts near-zero vacancies, overall investment
activity is similar to the declining trend globally. Investors
are exercising caution, and there are many market assets up
for sale, with more institutions seeking to sell than there
are buyers. Only prime assets are likely to attract potential
buyers, and even in these cases, adjustments to pricing
expectations may be necessary to successfully close deals.

Crystal Lee
CEO+82 2 2124 4163
csjlee@savills.co.kr

JoAnn Hong
Senior Director
Research & Consultancy+82 2 2124 4182
jhong@savills.co.kr

Office and Logistics Transaction Volumes, 2014 to Q3/2023

OfficeLogistics

20
18
16
KRW TRILLION

14
12
10
8
6
4
2
0
2014

2015

2016

2017

2018

2019

2020

2021

2022

Q3/2023

Source Savills Korea Research & Consultancy

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Yongsan The Prime Tower

Seoul, Others

KRW238.4 bil/
US$178.4 mil

IGIS AMC

OfficeTower 8Seoul, CBD

KRW549.0 bil/
US$411.0 mil

Mirae Asset Global Investments(National Credit Union)

OfficeKAL Building

Seoul, CBD

KRW264.2 bil/
US$197.8 mil

Korean Air

OfficeLOGOS Yeoju Logistics
CenterYeoju

KRW64.0 bil/
US$47.9 mil

LOGOS

Logistics

Coupang Yangji 5
Logistics Center

YonginKRW467.0 bil/
US$349.6 mil

Mirae Asset Global Investments

Logistics

Source Savills Korea Research & Consultancy

savills.com.hk/insight-and-opinion/

18

Asia Paciﬁc Investment Quarterly

Taiwanquarterly transactions, around NT$8.2 billion, followed byfactories, accounting for 31%. Demand for oﬃce upgradesfrom technology companies in metropolitan areas fueledsales as several industrial oﬃce development projects soldout before completion, especially for development projects
in New Taipei City.
In addition to technology companies, local food andrestaurant chains turned active in factory acquisitions thisquarter to accommodate central kitchens and cold chain
logistics by acquiring factories in northern Taiwan for a totalof NT$2.7 billion given the recovery of domestic consumption
and the growth of the food and beverage industry. Even
though most technology and manufacturing companies
remained cautious about spending, prices of industrial land
continued to rise. Buyers with rush orders are willing to pay
more, causing sellers to stand ﬁrm on pricing.
In the land market, buyers’ attitudes are more diverse.
While some developers are releasing land on to the market for
sale, land auctions held by local governments received positive
feedback which led land transaction volumes in Q3 to increaseby 29% QoQ to NT$30.6 billion. Looking forward, someowners of both land and commercial properties will consider
selling non-core assets to raise capital by the end of the year,
which might raise market activity in the fourth quarter.

The Taiwan Central Bank paused its interest rate hikes
in September, keeping the benchmark rate at 1.875% as
the economy faced more challenges. The global economic
slowdown led Taiwan’s export volumes for the ﬁrst eightmonths of 2023 to drop by 16% and several institutions
projected that Taiwan’s 2023 GDP growth might fall between
1.4% and 1.6%, the lowest ﬁgure since 2015. Even though
the economy is experiencing diﬃculties, the government
maintains its goal to reduce speculation in the housing
market. Following several waves of credit control onhome mortgages and amendments to capital gains tax,
the government rolled out new policies which prohibit
the transfer and resale of pre-sale residential units until
projects are completed. In the next phase, the government
will undertake structural reform to building tax to focus
on multiple homeowners by lifting tax rates. As a series ofmarket cooling measures are targeting the residential sector,
commercial market activity also witnessed stagnation due tothe gloomy economic outlook and interest rate hikes.
The market momentum turned weak in the third quarterof 2023 with transaction volumes recorded at NT$15.4
billion, down 72% QoQ and 60% YoY, the lowest level inthe past 20 quarters. In terms of property types, industrial
oﬃces showed a stable demand accounting for 53% of

Ricky Huang
Managing Director+886 2 8789 5828
rhuang@savills.com.tw

Erin Ting
Director
Research+886 2 8789 5828
eting@savills.com.tw

Commercial Property Transaction Volumes by Property Type, 2019 to Q3/2023
Insurance

Technology Companies

Developer

Pro investment instutite

Manufacture

Other

200
180
160

NT$ BILLION

140
120
100
80
60
40
20
0
2019

2020

2021

2022

Q1-Q3/2023
Source Savills Research & Consultancy

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Pegatron Guishan Plant

Taoyuan City

NT$3.0 bil/
US$94.4 mil

Pegavision

Industrial Office

Ase K27 Building(74% share)

Kaohsiung City

NT$1.7 bil/
US$51.8 mil

ASE Technology Holding

Factory

Plant in Guishan Industrial Park

Taoyuan City

NT$1.3 bil/
US$41.3 mil

Sushi Express

Factory

Two ﬂoors of industrial office in
Tai Yuen Hi-Tech Industrial Park

Hsinchu County

NT$937.3 mil/
US$29.1 mil

Forcelead Technology

Industrial Office

Two ﬂoors of Yu Tai Building

Taipei City

NT$641.9 mil/
US$19.9 mil

Taichung Bank Leasing

OfficeSource Savills Research & Consultancy

19

Asia Paciﬁc Investment Quarterly

ThailandThis data underscores the enduring appeal of these key
destinations among international travelers.
Before the onset of the pandemic, Bangkok, Pattaya, andPhuket typically maintained a healthy occupancy rate ranging
from 75% to 81% in the last quarter of 2019. However, theunprecedented challenges brought about by the pandemic
led to a drastic drop, plummeting to an alarming 0% during
the height of the crisis. Since then, the sector has been on a
gradual path to recovery, with signs of improvement becoming
more evident from the ﬁnal quarter of 2021 onwards. While
there has been consecutive progress, occupancy rates have
yet to reclaim their pre-pandemic levels, indicating that theindustry is still on its journey towards a full resurgence.
In tandem with the gradual recovery, both Thai andinternational hotel chains are demonstrating robust
conﬁdence in the potential of popular tourist destinations
like Bangkok and Phuket, investing in new operations acrossvarious market segments. As evidence of this emerging trend,
several city hotels, including the highly anticipated luxury
brand "Aman Nai Lert" with 52 keys on Wireless Road and abranded housing component, are expected to open their doors
in 2024. In addition, the openings of the InterContinental
Bangkok Thonglo, Four Points by Sheraton Sukhumvit, andSotetsu Asoke are highly anticipated. These initiatives serve as
encouraging signs of the industry's recovery and dedication tooﬀering top-notch hospitality experiences.

In the last quarter, GDP growth fell due to subdued
investment and export volumes amid global challenges
and rising interest rates. Recovery is expected in the third
quarter. Low inﬂation boosted spending, but the PMI
declined. Srettha Thavisin took dual roles in government,
implementing measures to support the economy and easeliving costs, including a substantial US$16 billion handout,
energy subsidies, and debt payment deferments.
In the second quarter of 2023, Thailand's international
tourist arrivals remained stable at approximately 6.4
million, mirroring the ﬁgures from the preceding
quarter. The Oﬃce of the National Economic and Social
Development Council (NESDC) reported a noteworthy
surge in private ﬁnal consumption expenditure, which saw agrowth of 7.8% following a 5.8% rise in Q1/2023. This robust
expansion was primarily driven by a sustained inﬂux of both
domestic and foreign tourists.
In the ﬁrst eight months of 2023, Bangkok, Pattaya, andPhuket continued to reign as the top three destinations
for international tourists in Thailand. Collectively, theseprovinces welcomed an impressive 67% of all international
visitors nationwide. Bangkok emerged as the frontrunner,
attracting the highest share of visitors at 40%, followed by
Chonburi, which encompasses the popular tourist destinationof Pattaya, accounting for 14%. Meanwhile, Phuket secured thethird spot with a 12% share of the accumulated visitor arrivals.

Robert Collins
CEO+66 2636 0300
robertc@savills.co.th

Puncharas Angkeaw
AnalystResearch & Consultancy+66 2636 0300
puncharas.a@savills.co.thThailand's Tourist Arrivals and Hotel Occupancy Rate, Q1/2019 to Q2/2023
International Tourist Arrival (LHS)
Bangkok Average Occupancy Rate (RHS)

Chonburi Average Occupancy Rate (RHS)
Phuket Average Occupancy Rate (RHS)
100%
90%

10,000

80%
70%

8,000

60%
6,000

50%
40%

4,000

30%
20%

2,000

10%

2019

2020

2021

2022

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

0%
Q1

0

AVERAGE OCCUPANCY RATENUMBER OF TOURISTS ('000)

12,0002023
Source REIC

Major Investment Transactions, Q3/2023
PROPERTY

LOCATION

PRICE

BUYER

USAGE

Land in Asia Industrial Estate
Suvarnabhumi

Samut Prakan

THB392.0 mil/
US$10.7 mil

Frasers Property TH Ind REIT

WarehouseLand in Chonburi

Mueang Chon Buri,
Chon Buri

THB247.8 mil/
US$6.8 mil

Lelon Electronics
Corporation

Commercial

Plot A2.2/1 Banwa Hi-Tech
Industrial Estate

Bang Pa-in, Phra
Nakhon Si Ayutthaya

THB80.3 mil/
US$2.2 mil

Frasers Property TH Ind REIT

Warehouse

Plot A1.7/2 Kabinburi
Industrial Zone

Kabin Buri,
Prachin Buri

THB48.4 mil/
US$1.3 mil

Frasers Property TH Ind REIT

Warehouse

W4/1-4 Frasers Property
Logistics Park Laemchabang

Si Racha,
Chon Buri

THB257.2 mil/US$7.0 mil

Frasers Property TH Ind REIT

Warehouse

Source MSCI Real Capital Analytics

savills.com.hk/insight-and-opinion/

20

Asia Paciﬁc Investment Quarterly

Vietnam
Despite a slowdown amid global economic diﬃculties,
Vietnam’s performance remains well underpinned given
its continued appeal to foreign investors, particularly
manufacturers. By the end of August 2023, total newly
registered FDI increased by 69.5% YoY to US$8.8 billion.
The Government has eased monetary policies to boost
macroeconomic stability while public investment spendingrose by 23.1% YoY to US$14.5 billion in 8M/2023.
The export value has increased steadily since April 2023,
with a notable 7.7% MoM rise in August. Inventories in the US
dropped to 10% in August, which is positive for manufacturing
demand given the US is one of Vietnam’s largest trade partners.
Industrial real estate continues to be a signiﬁcant source ofreal estate investment. In July, Sumitomo Group (Japan) signed
a MoU with Thanh Hoa Province to develop a 650-ha industrial
park with an investment of US$400 million; it is also researchinga 300-ha industrial park in Nam Dinh Province. At the end of
August, three new Vietnam-Singapore Industrial Park (VSIP)
projects started, two received investment approval, and 12 signed
development cooperation agreements. A joint venture between
Lineage Logistics and SK Logistics was announced on August
11th to improve and expand the cold storage system in Vietnam.
A new factory in Long An with a total investment of US$185
million was approved for Suntory Pepsico in July; HyosungGroup also has a plan to invest in a carbon ﬁber factory in Vung
Tau which would cost nearly US$1 billion.

Large residential developers like Vingroup, Masterise
Homes, Ecopark launched new products for sale at the endof the quarter. The amended Housing Law is expected tobe approved at the 6th National Assembly Session (end of2023), which will remove the regulation which states that
all commercial housing developments must reserve 20% of
their land for social housing. This is likely to be favourable fordevelopers looking to implement projects at greater speed.
Major M&A transactions include:• SkyWorld Development Berhad (Malaysia) acquired 2,060
sq m of land for residential development in District 8, Ho
Chi Minh City, from Thuan Thanh JSC for US$14.3 million.
• Gamuda Berhad (Malaysia) purchased 3.68 ha of land in Thu
Duc City from Tam Luc Real Estate Corp. for approximately
US$315.8 million for mixed-use development.
• Keppel Corporation (Singapore) acquired 65% of a company
that will hold retail property in Ha Noi, for an aggregate
consideration of US$50.4 million.
• First Real Land JSC (Vietnam) acquired a 22% share ofcharter capital at Bach Dang Complex Company which has aland area of 6,879 sq m in Da Nang City US$8.2 million.
• Saigonres Group (Vietnam) conducted an M&A to acquire
90% of Duc Nhi Company, thereby becoming the owner of a
7,700 sq m land plot in Tan Phu District, HCMC.
• F.I.T Group (Vietnam) oﬃcially divested all its capital in
the 800-ha beach resort project Cap Padaran Mui Dinhin Ninh Thuan Province. The new legal representative isThang Van Luong (Tincom Group).

Neil MacGregor
Managing Director+84 8 3823 7454
nmacgregor@savills.com.vn

Troy Griffiths
Deputy Managing Director
Advisory Services+84 8 3823 9205
tgriffiths@savills.com.vn

International Visitors to Vietnam, January 2022 to August 2023

NUMBER OF VISITORS ('000)

1,400
1,200
1,000
800
600
400
200

2022

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

0

2023

Source Vietnam National Tourism Administration

Major Investment Transactions, Q3/2023

PROPERTY

LOCATION

PRICE

BUYER

USAGE

Land in Ho Chi Minh City

District 8,
Ho Chi Minh Ciy

VND350.0 bil/
US$14.3 mil

SkyWorld Development
BerhadResidential

Land in Ho Chi Minh City

Thu Duc City,
Ho Chi Minh City

VND7.7 tri/
US$315.8 mil

GamudaResidential

Tien Bo Plaza - Ha Noi

Ba Dinh District,
Ha Noi

VND1.2 tri/
US$50.4 mil

Keppel Corporation

RetailBach Dang Complex

Da Nang City

VND200.0 bil/
US$8.2 milFirst Real Land JSC

Hotel, office,residential, commercial

Land in Ho Chi Minh City

Tan Phu District,
Ho Chi Minh City

N/A

Saigonres Group

Residential

Source MSCI Real Capital Analytics, Public Information21

Major Transactions Q3/2023

Australia
Axxess Corporate Park ►Mount Waverley, VIC
AU$306.2M/US$197.6M
in August▼ 1 Margaret Street
Sydney, NSW
AU$293.1M/US$189.1M
in AugustSoﬁtel Adelaide ▲Adelaide, SA
AU$154.0M/US$99.4M
in July◄ 44-48 O'Dea Avenue
Waterloo, NSW
AU$121.0M/US$120.2M
in September

Ibis & Novotel Melbourne ▼Melbourne, VIC
AU$170.0M/US$109.7M
in July

44 Market Street ▼Sydney, NSW
AU$393.1M/US$253.8M
in August▲ Trinity Clyde
Clyde, VIC
AU$180.0M/US$116.1M
in July▲ Stockland Townsville (50% stake)Townsville, QLD
AU$115.0M/US$74.2M
in September

Beijing
COFCO Landmark Plaza ►Dongcheng District
RMB4.3B/US$583.8M
in Q3◄ Future Center Block B
Chaoyang District
RMB480.0M/US$65.8M
in Q3◄ KR Center
Haidian Districtin Q3◄ Shenzhen Airline Plaza
Chaoyang District
RMB630.0M/US$86.4M
in Q3

Canaan Building ►Fengtai District
RMB348.0M/US$47.7M
in Q3

Central Park ►Chaoyang District
RMB381.0M/US$52.3M
in Q3

Contemporary Times Elderly Care Community ►Shunyi District
RMB2.1B/US$286.0M
in Q3

savills.com.hk/insight-and-opinion/22

Major Transactions Q3/2023

Shenzhen◄ Grand Joy Plaza (Retail Portion)
Meilin, Shenzhen
RMB115.0M/US$15.8M
in Q3

Shanghai◄ China Overseas
Centre (Block E 6-9F)
Putuo
RMB306.0M/US$42.0M
in Q3

Sheraton Shanghai
Hongkou Hotel ►Hongkou
RMB1.6B/US$225.7M
in Q3

Fraser Suites
Top Glory▲
Pudong
RMB4.1B/US$569.0M
in Q3

Tomson Waiqaoqiao
Industrial Park ►Pudong
RMB404.0M/US$55.5M
in Q3◄ Caohejing Kangqiao
Business Park
(Building 4/5)
Pudong
RMB163.0M/US$22.4M
in Q3

Hong Kong SAR/Macau SAR◄ 1 Dorset Crescent
Kowloon Tong, Hong Kong
HK$210.0M/US$27.0M
in July

De Fenwick ►Wanchai, Hong Kong
HK$900.0M/US$115.7M
in July

59 Mount Kellett Road ►The Peak, Hong Kong
HK$900.0M/US$115.7M
in July◄ Butterﬂy on Victoria
Tin Hau, Hong Kong
HK$468.0M/US$60.2M
in July
Avenida de D. João IV ►Macau
HK$84.0M/US$10.8M
in Q3

23

Major Transactions Q3/2023

India▼ Tidel Park
Taramani, Chennai
INR89.0Cr/US$11.0M
in AugustSovereign Park ▼Gurugram, Haryana
INR200.0Cr/US$24.0M
in July

A land and warehouse ▲Mumbai, Maharasthra
INR174.0Cr/US$21.0M
in September

Japan
Land and part of Seibu Ikebukuro,
Sogo Chiba, and Seibu Shibuya ▼Various
JPY300.0B/US$2.0B
in September

The Imperial Hotel Tower(35% land ownership) ►Tokyo
JPY62.0B/US$417.8M
in September▲► Daiwa Resort Hotel
Portfolio (27 properties)
Various
JPY133.7B/US$900.0M
in July◄ Fusaki Beach Resort Hotel & Villas
Okinawa
JPY40.3B/US$271.5M
in AugustMalaysia◄ A 960-acre
agricultural land
Tebrau, Johor
MYR547.7M/US$116.5M
in July

Menara CelcomDigi,
PJ Sentral ►Petaling Jaya, Selangor
MYR450.0M/US$95.7M
in Julysavills.com.hk/insight-and-opinion/◄ A 26-acre development land
Kuchai, Kuala Lumpur
MYR408.0M/US$86.8M
in July

A 550-acre
agricultural land ►Senai, Johor
MYR299.8M/US$63.8M
in July24▲ A 166-acredevelopment land
Ijok, Selangor
MYR306.0M/US$65.1M
in AugustMajor Transactions Q3/2023

Singapore
Sime Darby Business Centre ►315 Alexandra Road
S$68.0M/US$49.8M
in July◄ Changi City Point
5 Changi Business Park Central 1
S$338.0M/US$247.7M
in AugustFar East Shopping Centre ►545 Orchard Road
S$910.0M/US$666.9M
in September◄ PARKROYAL on Kitchener Road
181 Kitchener Road
S$525.0M/US$384.7M
in JulySouth Korea
Icon Yeoksam ▼GBD
KRW215.0B/US$159.0M
in Q3

Pangyo Techone Tower(AKA Alphadon City 6-2BL) (45.1% equity) ►PangyoKRW350.0B/US$259.0M
in Q3◄ Yongsan The Prime Tower
Yongsan
KRW238.4B/US$176.0M
in Q3▲ Tower 8(Strata-titled sale)
CBD
KRW549.0B/US$406.0M
in Q3

TaiwanTwo ﬂoors of Yu Tai Building ►Taipei City
TWD641.9B/US$19.9M
in July◄ Ase K27 Building (74% share)
Kaohsiung City
TWD1.7B/US$51.8M
in AugustPegatron Guishan Plant ►Taoyuan City
TWD3.0B/US$94.4M
in September◄ Plant in Guishan Industrial Park
Taoyuan City
TWD1.3B/US$41.3M
in August25

Savills Regional Investment Advisory,
Asia Paciﬁc
Head of Regional Investment Advisory

Head of Regional Research and Consultancy

Christian Mancini
Email: cmancini@savills.asia
Tel: +81 3 4330 3611
Toho Hibiya Promenade Building 8/F, 1-5-2 Yurakucho,
Chiyoda-ku, Tokyo 100-0006, Japan

Simon Smith
Email: ssmith@savills.asia
Tel: +852 2842 4573
Room 1202-04, 12/F, 1111 King's Road, Taikoo Shing, Hong Kong

Regional Director, Greater China Investment
Frank Marriott
Email: fmarriott@savills.asia
Tel: +852 2842 4475
23/F, Two Exchange Square, Central, Hong Kong

ASIA
Greater China
Hong Kong SAR
Raymond Lee
Email: rlee@savills.com.hk
Tel: +852 2842 4518
23/F, Two Exchange Square, Central, Hong Kong
With offices in Taikoo
Mainland China
Louisa Luo
Email: louisa.luo@savills.com.cn
Tel: +8621 6391 6688 ext 8018
25/F, Two ICC, No. 288 South Shanxi Road,
Shanghai 200031, China
With offices in Beijing, Chengdu, Chongqing,
Dalian, Guangzhou, Hangzhou, Nanjing, Shenyang,
Shenzhen, Tianjin, Wuhan, Xiamen and, Xi'an andZhuhai
Macau SAR
Franco Liu
Email: fliu@savills.com.mo
Tel: +853 2878 0623
Suite 1309-10, 13/F Macau Landmark,555 Avenida da Amizade, Macau

India
Diwakar Rana
Email: diwakar.rana@savills.in
Tel: +91 8527000387
403, Tower B, Level 4, The Capital, Street 3,
G Block, Bandra Kurla Complex, Bandra East,
Mumbai 400 051, India
With offices in Delhi NCR, Hyderabad, Bangalore,
Mumbai, Pune and Chennai

South Korea
Kookhee Han
Email: khhan@savills.co.kr
Tel: +82 (0) 2 2124 4181
13/F, Seoul Finance Center, 84 Taepyungro-1-ga,
Chung-gu, Seoul 100-768, Korea

Malaysia

Australia
Ben Azar
Email: bazar@savills.com.au
Tel: +61 2 8215 8824
Level 25, 1 Farrer Place, Sydney, Australia

Nabeel Hussain
Email: nabeel.hussain@savills.com.my
Tel: +60 3 2092 5955
Level 9, Menara Milenium, Jalan Damanlela, Bukit
Damansara, 50490 Kuala Lumpur, Malaysia

Offices throughout Sydney, Parramatta, Canberra,
Melbourne, Notting Hill, Adelaide, Perth, Brisbane,
Gold Coast and Sunshine Coast

With 2 branches throughout Malaysia

Ryan Geddes
Email: rgeddes@savills.co.nz
Tel: +64 0 9 951 5340
Level 6, 41 Shortland Street, Auckland,
NZ 1010, New ZealandPhilippines
KMC MAG Group
Michael McCullough
Email: michael@kmcmaggroup.com
Tel: +632 8403 5519
11/F Sun Life Centre, 5th Ave,
Bonifacio Global City 1634, Philippines

SingaporeJeremy Lake
Email: jeremy.lake@savills.com.sg
Tel: +65 6415 3633
30 Cecil Street, #20-03 Prudential Tower,
Singapore 049712

TaiwanRicky Huang
Email: rhuang@savills.com.tw
Tel: +886 2 8789 5828
21F, Cathay Landmark,No. 68, Sec. 5, Zhongxiao E. Road,
Xinyi District, Taipei City 110, Taiwan
With an office in TaichungIndonesia

ThailandPT CB Advisory, Savills Indonesia
Kevin Murtagh
Email: kevin.murtagh@savills.co.id
Tel: +62 21 293 293 80
Panin Tower - Senayan City, 16th floor, Unit C, Jl.
Asia Afrika Lot. 19, Jakarta 10270, Indonesia

Robert Collins
Email: robertc@savills.co.thTel: +66 2 636 0300
26/F, Abdulrahim Place, 990 Rama IV Road,
Bangkok 10500, Thailand

Japan

Neil MacGregor
Email: nmacgregor@savills.com.vn
Tel: +84 8 3823 9205
18/F, Ruby Tower, 81-85 Ham Nghi Street, District 1,
Ho Chi Minh City, Viet Nam

Andy Hurfurt
Email: ahurfurt@savills.co.jp
Tel: +81 3 4330 3328
Toho Hibiya Promenade Building 8/F, 1-5-2
Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan

AUSTRALASIANew Zealand

NORTH AMERICA
Richard Stevenson
Email: rstevenson@savills.us
Tel: +1 212 328 3972
399 Park Avenue, 11th Floor, New York, NY 10022

UNITED KINGDOM & EUROPE
Oliver Watt
Email: owatt@savills.com
Tel: +44 (0) 20 7016 3789
33 Margaret Street, London W1G 0JD,
United Kingdom
Offices throughout the United Kingdom, Belgium,
France, Germany, Hungary, Italy, Netherlands,
Poland, Spain and Sweden Associate offices inAustria, Greece, Norway, Portugal, Russia, Turkey
and South Africa

Viet Nam

With an office in Ha Noi

This document is prepared by Savills for information only. Whilst reasonable care has been exercised in preparing this document, it is subject to change, and these particulars do not constitute, nor constitute partof, an oﬀer or contract; interested parties should not rely on the statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy. No person in the employment of theagent or the agent’s principal has any authority to make any representations or warranties whatsoever in relation to these particulars and Savills cannot be held responsible for any liability whatsoever or for any
loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. This publication may not be reproduced in any form or in any manner, in part or as a whole without written
permission of the publisher, Savills. (IV/2023)

savills.com.hk/insight-and-opinion/